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Questions


What is the Early Payment Program™ (EPP™)?

The Textura Early Payment Program is an innovative alliance between Textura® and Greensill Capital, our financial services partner, that helps subcontractors get paid faster. General contractors can use EPP to pay their subcontractors soon after invoice approval — significantly earlier than normal payment timing.

EPP works by leveraging the financial strength of the general contractor’s balance sheet and using Textura’s CPM® solution to facilitate early payment through Greensill Capital to subcontractors that choose to participate.

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Why is EPP needed?

EPP addresses an important structural issue in the construction industry - namely, subcontractors carry out work on a project, pay for their labor and materials and then submit an invoice that often is paid much later. The cost to finance this working capital gap can be high, and not knowing when payment will be received creates serious cash flow issues. In addition, subcontractors, like most small and medium-sized enterprises, face an increasingly challenging financing environment, which further complicates their access to affordable working capital. This situation creates financial strain on subcontractors, limits growth and investment and can lead to business failure.

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What are the key benefits for subcontractors?

By enabling earlier, more predictable payment timing, EPP can help subcontractors by improving cash flow and working capital management. That, in turn, can help subcontractors become stronger and more profitable, enabling growth.

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What is Textura’s role?

Textura provides the technology for EPP via our Textura-Construction Payment Management (CPM) solution and technology platform. CPM, which is Textura’s online invoicing and payment management solution, has been enhanced to facilitate program administration, including general contractor-specific configuration. In addition, CPM facilitates payments to subcontractors from third-party funding sources, as well as the transfer of funds from general contractors to funding sources. As with CPM and our other solutions, we provide technology and support.

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Who is Greensill Capital and what is their role in EPP?

Greensill Capital is an independent financial services firm and principal investor group specializing in structured trade finance, working capital optimization, specialty financing and contract monetization. The firm was founded in 2011 by a seasoned team of trade finance specialists with the goal of providing innovative and alternative structured solutions for corporations and financial institutions globally. CEO Lex Greensill and his team created the global supply chain funding businesses at both Morgan Stanley and Citibank before starting their own business at Greensill Capital. Lex acts as the senior advisor on supply chain finance to U.K. Prime Minister David Cameron and has advised the White House on its SupplierPay program. Lex was also appointed as a Crown Representative to Her Majesty’s Government, a role focused on ensuring the British government gets better value in its supplier purchases.

Greensill Capital performs the underwriting and provides funding for EPP*.

* Funding for EPP is uncommitted and subject to the absolute discretion of Greensill Capital.

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How does EPP work?

Participating general contractors enroll their projects and offer the EPP option to subcontractors, using Textura’s CPM solution. Subcontractors that elect to participate then accept invoice payment terms, including a modest fee tied to the invoiced amount, through a fast and easy enrollment opt-in in CPM. As work on a project progresses, subcontractors submit invoices to general contractors for approval. After invoices are approved, accelerated payments to subcontractors are delivered via CPM using EPP funding*.

* Funding for EPP is uncommitted and subject to the absolute discretion of Greensill Capital.

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Is EPP mandatory if I work with a participating general contractor?

No. Taking advantage of EPP is always optional for subcontractors whose general contractor partners participate in the program. Eligible subcontractors can decide – generally on an invoice-by-invoice basis – whether they want to opt for early payment.

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Are there programs like this one in other industries?

Yes. Companies in various industries use such supply chain finance programs to increase smaller suppliers’ cash flow and/or access to affordable working capital.

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Are EPP Payments considered debt?

No.

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What does enrollment entail?

Unlike traditional financing, there is no lengthy, paperwork-intensive application process. Once invited, you just click to enroll in CPM and accept the terms and conditions. In addition, subcontractors can opt in or out of the program as needed.

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How can I participate?

You must be invited to participate by a general contractor that is participating in EPP.

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Will the program change how I currently use CPM?

No, you will continue to use the system as you always have and enjoy the same process benefits, including electronic funds transfer to your bank account.

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Want more information about how EPP helps pay subcontractors faster?

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